Stalled Bengaluru Project? How SWAMIH Funding Works and What Buyers Should Check
A PIB explainer dated 13 March 2026 sets out how the SWAMIH fund finances stalled affordable and mid-income housing: RERA registration, units up to 200 sq m and under Rs 1.5 crore in Bengaluru, net worth positive projects, and a proposed Rs 15,000 crore Fund-2. Here is what a Bengaluru buyer in a delayed project can take from it.
About 1,800 homes in one Bengaluru project. That is the scale of Mantri Serenity, a mid-income development launched in 2011 that, according to a Press Information Bureau explainer dated 13 March 2026, was delayed by nearly three to four years because of funding constraints, slower sales and weakened cash flows. The government-backed SWAMIH fund invested in September 2020, the project was completed within about four years of that investment, and the explainer records full repayment of Rs 230 crore by April 2024.
For a Bengaluru buyer whose own project has slowed or stopped, that story raises an obvious question: could the same kind of money reach my building? This guide sets out what the PIB explainer says about how SWAMIH works, which projects qualify and what Fund-2 adds. It does not assess any project's eligibility.
The short answer. SWAMIH, launched in 2019, is a SEBI Category-II Alternative Investment Fund with an aggregate corpus of Rs 15,531 crore that lends priority debt to stalled housing projects. To qualify, a project must be stalled mainly for lack of funds, be registered under RERA, be net worth positive and fall in the affordable or mid-income category, which for Bangalore means units up to 200 sq m of RERA carpet area priced below Rs 1.5 crore. SWAMIH Fund-2, announced in Budget 2025-26, has a proposed corpus of Rs 15,000 crore to complete another 1 lakh units. The trade-off: the fund can revive a viable project, but it lends to projects, not to individual buyers, and eligibility is decided by the fund after due diligence.
What is SWAMIH and who runs it?
A government-backed investment fund for finishing stalled homes. The explainer says the Special Window for Affordable and Mid-Income Housing Investment Fund "provides last-mile financing to housing projects affected by financial constraints", with a focus on "completion rather than initiation."
It describes SWAMIH as a Category-II Alternative Investment Fund created under SEBI regulations "with the explicit purpose of facilitating priority debt financing for the completion of stalled residential housing projects." The corpus of Rs 15,531 crore comes from the Government of India, public sector banks and LIC. Professional fund management is handled by SBICAP Ventures Ltd, a wholly owned subsidiary of the State Bank of India, and the explainer names the Department of Economic Affairs in the Ministry of Finance as the sponsor responsible for oversight.
The phrase "priority debt" matters for buyers. The explainer says the fund pools capital and deploys it "as priority debt to projects that are viable but delayed". It describes lending into projects to finish construction; it does not describe buying flats from, or refunding, individual buyers.
Which projects qualify for SWAMIH funding?
Five criteria, according to the explainer. A project must be stalled or delayed "mainly because of insufficient funding"; it must be registered under RERA; it must fall in the affordable or middle-income category; it must be net worth positive; and priority goes to projects in advanced stages of construction and close to completion.
The price and size test is city-specific. The explainer defines eligible units as those that "do not exceed 200 sqm RERA carpet area" and are priced below Rs 2 crore in the Mumbai Metropolitan Region, below Rs 1.5 crore in the National Capital Region, Chennai, Kolkata, Pune, Hyderabad, Bangalore and Ahmedabad, and below Rs 1 crore in the rest of India.
Net worth positive has a precise meaning here. The explainer defines it as projects where "the value of receivables plus the value of unsold inventory is greater than the completion cost and outstanding liabilities at the project-level." In plain terms, money still to come in from buyers plus the value of unsold flats must exceed what it will cost to finish and what is owed.
A simple illustration shows how the test works. Suppose a stalled Bengaluru tower has Rs 60 crore still due from existing buyers and unsold flats worth Rs 90 crore, a total of Rs 150 crore. If finishing it will cost Rs 80 crore and the project owes Rs 50 crore, the total is Rs 130 crore, so the project passes on this measure. If the outstanding liabilities were Rs 80 crore instead, the total of Rs 160 crore would exceed Rs 150 crore, and the project would not meet the test. These numbers are hypothetical and only illustrate the definition; the fund makes its own assessment.
| SWAMIH criterion | What the PIB explainer says | What a Bengaluru buyer can check |
|---|---|---|
| Reason for delay | Stalled or delayed mainly because of insufficient funding | Whether the builder's own updates cite funding as the cause |
| RERA status | Project must be registered under RERA | The project's registration on the state RERA portal |
| Size and price | Units up to 200 sq m RERA carpet area; below Rs 1.5 crore in Bangalore | Your unit's carpet area and agreement value |
| Finances | Net worth positive: receivables plus unsold inventory exceed completion cost and liabilities | Disclosures on sales, receivables and costs, where available |
| Stage | Priority to projects in advanced construction, close to completion | Construction progress against the RERA schedule |
Can a project in insolvency or with a bad loan still qualify?
Yes, for consideration. The explainer says that "to widen the scope of investments, projects classified as Non-Performing Assets (NPAs) as well as those under proceedings before the National Company Law Tribunal (NCLT) are also eligible for consideration."
It adds a time limit for insolvency cases: projects "undergoing the corporate insolvency resolution process before the NCLT are eligible for funding until the resolution plan is approved or rejected by the Committee of Creditors." All funding applications, it says, are examined by the fund's Investment Committee after detailed due diligence and consultations with existing lenders and legal advisors.
If your builder is in insolvency, PropNewz explained how homebuyers are represented in our guide to homebuyers' authorised representatives under IBBI rules. A buyer in that position can ask the representative whether last-mile funding options such as SWAMIH have been considered.
What has SWAMIH delivered so far?
The explainer gives several figures. It says that, as on 15 December 2025, over 58,000 homes had been completed across 146 projects, including more than 7,000 units in the rehabilitation and EWS category. It describes a portfolio of more than 146 residential projects across 20 cities and 12 states, and says the fund is expected to facilitate delivery of more than 1 lakh homes.
On money, it says the fund has unlocked over Rs 49,500 crore of capital, recorded 55 full exits and 44 partial exits, and returned nearly 50 per cent of drawn capital to investors. Of about Rs 7,000 crore invested by the Government of India, it says about Rs 3,500 crore has been recovered.
The Bengaluru case is Mantri Serenity. The explainer says about 350 new units were sold, generating collections of about Rs 450 crore, contractor and vendor dues were cleared, legal and regulatory challenges were resolved during asset management, and 1,800 homebuyers were enabled to receive their homes.
What does SWAMIH Fund-2 add?
A second, blended fund. The explainer says SWAMIH Fund-2, "announced in Budget 2025-26, represents the next phase of intervention", and "will operate as a blended finance facility with contributions from the Government, banks, and private investors." It gives a proposed corpus of Rs 15,000 crore, aimed at "the expeditious completion of an additional 1 lakh units."
The explainer uses the word "proposed" for the corpus. This guide does not state how far Fund-2 has progressed since March 2026, so a buyer should treat it as a stated plan and check for later official updates.
What can a Bengaluru buyer in a stalled project actually do?
Gather facts, use your rights, and ask the right questions. SWAMIH is one possible route to completion, decided by the fund, not by buyers. Your own options under RERA, such as a refund or delay interest, run separately. Our coverage of a buyers' association completing a stalled project under RERA Sections 7 and 8 shows another route.
- Check that your project is registered under RERA and note its registration number.
- Compare your unit's RERA carpet area and agreement value with the 200 sq m and Rs 1.5 crore limits for Bangalore.
- Collect the builder's latest progress disclosures and any explanation it has given for the delay.
- Form or join a buyers' association so that questions to the builder, lenders and regulators come from one voice.
- If the builder is in insolvency, ask the homebuyers' authorised representative whether last-mile funding has been explored.
- Keep your own RERA remedies in view, and take legal advice before choosing between refund, delay interest or waiting for completion.
- Watch for official updates on SWAMIH Fund-2 rather than relying on informal claims that a project has been funded.
Frequently asked questions
What is the SWAMIH fund?
According to a PIB explainer dated 13 March 2026, the Special Window for Affordable and Mid-Income Housing Investment Fund, launched in 2019, provides last-mile financing to stalled housing projects. It is a SEBI Category-II Alternative Investment Fund managed by SBICAP Ventures, with an aggregate corpus of Rs 15,531 crore.
Which Bengaluru projects qualify for SWAMIH funding?
The explainer lists criteria: the project must be stalled mainly for lack of funds, registered under RERA, net worth positive, and in the affordable or mid-income category, meaning units up to 200 sq m RERA carpet area priced below Rs 1.5 crore in Bangalore. Projects near completion get priority.
Can a project under NCLT get SWAMIH money?
The explainer says projects classified as non-performing assets and those before the National Company Law Tribunal are also eligible for consideration. Projects in corporate insolvency resolution are eligible until the resolution plan is approved or rejected by the Committee of Creditors.
What is SWAMIH Fund-2?
The PIB explainer says SWAMIH Fund-2 was announced in Budget 2025-26 as a blended finance facility with contributions from the government, banks and private investors. It has a proposed corpus of Rs 15,000 crore and aims at completing an additional 1 lakh stalled housing units.
This article summarises a Press Information Bureau explainer for information only. It is not financial or legal advice, and it does not suggest any project is eligible for or will receive SWAMIH funding.
Last updated 2026-11-11. PropNewz Team.
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